Answer:
HPR = 0.371%
Explanation:
we must first determine the price of the bond in 1 year:
present value of face value = $1,000 / (1 + 6.25%)⁶ = $695.07
present value of coupon payments = $52.50 x 4.87894 (PV annuity factor, 6.25%, 6 periods) = $256.14
market price in 1 year = $951.21
since you bought the bond at face value (market value = YTM), the the holding period return is:
HPR = [(ending price - actual price) + dividends received] / actual price
HPR = [($951.21 - $1,000) + $52.50] / $1,000 = $3.71 / $1,000 = 0.371%
Answer:
$5,000
Explanation:
The computation of the interest payable is shown below:
= Borrowed amount or Principal × rate of interest × (number of months ÷ total number of months in a year)
= $500,000 × 6% × (2 months ÷ 12 months)
= $5,000
The 2 months is calculated from November 1, 2018, to October 31, 2019
It is somewhat similar to the simple interest formula.
Answer:
He has to pay the insurance company=$1840.90
Explanation:
Value of his home=$449,000
Insurance company charges $0.41 per $100 of value in his home
Number of $100's in $449,000=449000/100=4490
They charge 0.41 for every $100=4490×0.41= $1840.90
He has to pay the insurance company=$1840.90
Answer:
Cash in-flow in the last year.
Explanation:
Salvage value, also known as residual value, is the amount that you receive from sale of Property, Plant, and Equipment at the end of useful life. When computing the NPV of any project, we consider all the relevant cash flows of that project. Since, $45,000 will be received when project ends from sale of Fixed asset, so this figure will be treated as Cash in-flow and discounted.
Answer:
Following are the journal entries recorded for the payroll of current time period;
Debt: Salary Expense = $50,000
Credit: Tax Payable by Medicare = $750
Credit: Deduction Payable For Employee Saving = $2,550
Credit: Income Tax payable for Federal Employees = $9,000
Credit: Tax payable for Social Security = $3,000
Credit: Salaries payable to Employees = $34,700
